Fannie Mae (FNMA)

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New Tim Howard

In this post, Tim notes that last week’s decision by the U.S. Court of Appeals for the D.C. Circuit upholding the legality of the net worth sweep has pushed mortgage reform back in the administration’s policy queue, behind tax reform. Having tax reform precede mortgage reform makes it more important for Fannie and Freddie to minimize the impact of a reduction in the corporate tax rate on their deferred tax assets (DTAs). With the likelihood of the companies being able to forego their March and June sweep payments diminished by the appellate court ruling,He proposes an alternate way for Fannie and Freddie—with the help of the Mnuchin Treasury—to reduce the potential for DTA write-offs, and also boost their retained earnings.



The post can be found here: howardonmortgagefinance.com